Online ventures face huge marketing challenges. They must act quickly to optimize both the product and services they will offer, as well as the revenue model. To succeed, they need to:

1. Segment their markets. Not all customers can be treated the same. Identifying the most important segments is a must. Valid data will be crucial. Sophisticated research with state-of-the-art multivariate methods will provide indispensable insights that can be turned into a long-lasting strategic advantage.

2. Start with the most promising segments. Not every customer segment has to be served from the start. In order to get on the fast track to profitability, companies need to focus on those segments that hold a large enough potential to reach the critical mass that justifies large investments.

3. Focus on premium quality offers. Value for money. It’s as simple as that. Premium products are an absolute must for the new services, because reliable, first-class quality is the one thing file-sharing pirates will never be able to deliver consistently.

4. Develop sexy products. The sale of content online is nearly constraint-free. It forces industries to think beyond its established borders and look for new products and services (bundles, additional services), as well as new partners (ISPs, mobile phone companies).

5. Optimize the revenue models. We are talking about multi-billion dollar markets at stake. This calls for a little more sophistication than mere subscription fees. A huge part of the potential profits will be generated by utilizing advanced pricing tools like stretch discounts. Neglecting those tools means sacrificing those profits. Not doing the necessary research most certainly means missing the optimal prices and giving away millions in profits.